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UK workers rank among the world’s most miserable, survey finds

Rising employment costs have significantly eroded confidence among the UK’s smallest businesses, according to the latest research from the Federation of Small Businesses (FSB).

British employees are unhappier in their jobs than workers in India, the Philippines and the US, according to new research that has reignited concerns about the UK’s flagging productivity.

A global survey of 70,000 employees by consultancy WorkL found UK staff reported higher levels of workplace anxiety and lower happiness than counterparts in countries including South Africa, Kenya, the United Arab Emirates, India and the Philippines.

Job satisfaction among British workers also ranked below that of employees in the US, India and the Philippines, with the UK scoring under the global average for overall workplace wellbeing — a measure that includes whether staff believe their employer cares about their happiness.

Lord Price, the former Waitrose boss who founded WorkL, said the findings help explain Britain’s long-running productivity problem.

“We know from extensive research that happier employees are more productive,” he said. “They give extra discretionary effort and take fewer sick days. Achieving a happier workforce should be seen as a strategic imperative for the UK economy.”

The results come just days after Chancellor Rachel Reeves promised to focus her next Budget on improving productivity. UK output per worker has consistently lagged behind other G7 nations, weighing on company profits and wage growth.

Figures from the Resolution Foundation earlier this year showed UK productivity fell 0.5% between 2019 and 2024, compared with a 9.1% rise in the US over the same period. Public sector productivity remains 4.2% below pre-pandemic levels, according to the Office for National Statistics (ONS), although there was a 2.7% year-on-year increase in the first quarter of 2025.

Lord Price also warned about the rising number of people leaving the workforce since the pandemic, citing burnout, poor health and inflexible working arrangements as key drivers.

“By rethinking how, when and where work is done, we can draw more people into fulfilling employment, retain valuable skills and unlock economic growth,” he said. “This isn’t just good for individuals — it’s part of the solution to one of the UK’s most pressing economic challenges.”

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UK workers rank among the world’s most miserable, survey finds

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